P&G's Brand Management System

            
 
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Case Details:

Case Code : MKTG073
Case Length : 15 Pages
Period : 2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Procter & Gamble
Industry : FMCG
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"The brand-management aura has propagated one of the biggest myths about P&G, that it does nothing but influence consumers to buy the company's products. P&G has always been misunderstood as a marketing company. The fact is that P&G's fortunes have been built on product innovation. Brand management is an integral aspect of it, and it's the way the business is managed."1

- John Smale, Former Chairman, P&G.

"Our brand is our bond with consumers. When we succeed, we convert a trademark into a trustmark, and another P&G brand becomes a valued and trusted member of the household."2

- John Lafley, President & CEO, P&G.

Introduction

Based in Cincinnati, US, Procter & Gamble (P&G) was one of the largest manufacturers of fast moving consumer goods (FMCG) in the world. For the financial year ending June 2003, P&G reported revenues of $43.38 bn and net earnings of $5.18 bn. In 2003, the company was ranked 31st among the Fortune 500 companies. P&G had operations in 80 countries globally, with an employee-strength of around 1,10,000 worldwide. Analysts attributed the evolution of P&G, from a small soap and candle maker into a multi-billion dollar company, to its highly successful marketing and brand management strategies (Refer Exhibit I for P&G's competitive advantage in branding).

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1] In the article titled "1931 Memo First Devised Role of the 'Brand Man,'" by Cliff Peale, The Cincinnati Enquirer, May 20, 2001.

2] In the article titled "Report on the Business 2000 Annual Meeting of Shareholders," in www.pg.com, May 4, 2001.

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